According to a real estate consultant, 77 percent of new student beds were provided by private providers in 2018. The market is dominated by a relatively small number of companies, with the top 5 holding 24 per cent of the shares. On the other hand, residential student housing is regulated by the HMO licensing system. This is the case whether or not the supplier has accepted an approved code of conduct. HMO license is required if five or more students share a kitchen. This means that studios and minor roommates would not be covered by the plan. “The demand for housing doesn`t seem to be getting over the place – and that`s why university residences remain popular,” Says Fewster. Harper Macleod also played for the Derwent Housing Association in a student residency project funded by A Loan to the University of Hertfordshire. In the Purpose Built Student Accommodation (PBSA) industry, we have essentially 2 main ways to get students for accommodation, which are either Direct Let or Nomination Agreements. “Historically, student housing has not generated any gains in planning through affordable housing, although we have recently seen the trend reversed in Southwark, which has placed a recent need for affordable housing.
In accordance with the appointment agreement, the Bath Group portfolio (354 beds in total for the 2016/2017 academic year) will be leased to students at the University of Bath who, during the term of the appointment agreement, will guarantee 100% of the annual revenue from available accommodation costs (the “annual tax”). The annual fee agreed at current market prices will be subject to an annual increase of 2 to 5% over the retail price index. “The appointment agreement provides the University of Bath with much-needed access to premium accommodation for its students and provides Empiric with a linked income for the Bath portfolio for a period of five years. We look forward to a good collaboration with the University of Bath. As Empiric continues to focus on directly rented student housing, we will assess the dynamism of each market and implement the most appropriate rental strategy. Here, the operator must market the PBSA directly to the students, rent and manage the block. The mechanics are similar to the way traditional property management companies manage real estate for renting in the private rental sector. However, managing the PBSA stock requires much more hands-on approach and usually requires a local team when the scheme is vast (more than 150 bed places) than many tend to be. Marketing method and tactics aimed at students should be tempting and encourage students to take up the accommodation, which usually have a contract of 43-51 weeks. Of course, the development of student housing goes over bricks and mortar – student accommodations need maintenance staff, cleaning staff, etc.